The Sultan Kudarat Provincial

Investment Code of 2007

SKIPC of 2007

CHAPTER I
TITLE AND DECLARATION OF POLICIES
Section 1. Title. This Ordinance shall be
known as the Sultan Kudarat Provincial
Investment Code of 2007 or SKPIC of
2007 for brevity.

Section 2. Declaration of Investment

Policies.
1. This Investment Code is a statement of policy by the
Provincial Government of Sultan Kudarat, pursuant to
Omnibus Investment Act of 1996 (E.O. 226), to encourage
and guide development investment in the province of
Sultan Kudarat. Thus, it is hereby declared the policy of the
Provincial Government of Sultan Kudarat to promote,
strengthen and encourage the growth and development of
industries and relevant economic activities in the
productive sectors of the province which are globally
competitive, culture-sensitive and environmentally sound,
particularly in tourism, manufacturing, production,
processing, energy development, agro-industrial, agroforestry industry and agriculture

. To this end, the Provincial Government of

Sultan Kudarat shall endeavor to spur the
growth and development of various
industries and support services through
sound economic policies, laws, ordinances
throughout the Province thereby attaining
countryside economic stability, growth for
the province and improvement of
constituents quality of life.

Moreover, it shall also be the policy of the Province of Sultan Kudarat:

a) To attract, promote and welcome productive investment in business
activities which will significantly contribute to the industrialization and
socio- economic development to the extent allowed by the Constitution
and relevant laws. However, emphasis is given for this investments not
to give undue advantage to new investors to the detriment of existing
enterprises engaged in the same or similar line of economic activity
and not to compromise nor impose upon the peoples socio-cultural
values;
b) To encourage investments in enterprises that significantly expand
livelihood and the employment opportunities for Sultan Kudaratnons
and enhance economic value of fast products, promote the welfare of
Provincial consumers and transfer relevant technologies in agriculture,
industry and support services;

c) To encourage joint ventures between commercial enterprises and

farmers association or cooperative as a strategy to modernize
agriculture and improve its competitiveness.
d) To promote the marketing of Sultan Kudarat products in order to
maximize production, attain self-sufficiency and optimal productivity;
e) To promote Sultan Kudarat Province as a favorable investment
destination with adequate power, adequate water resources, free of
congestion and pollution, and easily accessible to Asia Pacific region
and other global markets;
f) To promote the active participation of non-government organizations
and the private sector as partners and catalysts in achieving the
development goals of the province; and
g) To be able to sustain investment in the Province, ensure its proper
implementation and assure investors of peace and order for the
economic upliftment of the people.

CHAPTER II
PURPOSE AND OBJECTIVES
SECTION 3. Purpose. Its purpose is to inform
potential investors and others responsible
for planning, promoting, or encouraging
investment in the Province of Sultan
Kudarat, of the following:

PURPOSE
a) The investments and activities which merit
encouragement;
b) The priorities attached to particular
investments and activities;
c) The criteria by which enterprises may be
evaluated for approval to carry on a
business in the Province of Sultan Kudarat.

SECTION 4. Objectives. In pursuance of the

policy stated in Section 2 hereof, the following shall
be the objectives of this Code:

a) To encourage Filipino and foreign

investments or joint venture tie-up in
projects to develop agricultural, agroindustrial, industrial and manufacturing
industries which will bring about greater
economic stability, provide more
opportunities for employment, and raise the
standard of living of the people;

b) To welcome and encourage domestic and

foreign investors to establish enterprises
that are capital intensive utilizing a
substantial amount of human resource/labor
available in the province;

c) To actively encourage and promote the

optimum utilization of domestic raw
materials available in the Province without
necessarily resulting to
environmental/ecological degradation;

d) To provide fiscal and non-fiscal incentives

to local and foreign investors and
encourage them to establish business in
Sultan Kudarat Province;

e) To develop markets for Sultan Kudarat

products in order to attain a rising level of
production and employment, hasten the
economic development in the province
and assure that the benefits of development
accrue to the Filipino people, in general and
Sultan Kudaratnons, in particular; and

f) To accelerate the development of

agricultural and industrial sectors by
dispensing productive employment and
income opportunities in the countryside
aimed at attaining self-sufficiency in basic
commodities and raw materials as well as
increasing production of crops and other
products.

CHAPTER III
SCOPE, APPLICATION, AND RULES ON INTERPRETATION

SECTION 5. Scope and Application. - This

Code shall apply to all persons, entities or
enterprises, belonging to small, medium and
large-scale categories in preferred areas of
investments in agribusiness, eco-tourism
and services and other areas of investments
as may be determined from time to time by
the Board.

SECTION 6. Rules on Interpretation. Any

conflicts or controversies arising under the Code
shall be resolved on the basis of applicable legal
provisions or jurisprudence and liberally construed
to carry out the objectives of this Code. As to all
doubts and/or conflicts concerning the benefits,
privileges, and incentives granted under this Code
or in other local ordinances enacted for the
purpose of encouraging investment, it shall be
resolved in favor of the investor.

CHAPTER IV
DEFINITION OF TERMS
SECTION 7 . Definition of Terms. - When
used in this Code, the following terms,
acronyms and phrases shall mean as
follows:
a) "SKIPC" shall refer to the Sultan Kudarat
Investment Promotion Center created under
this Code that serves as the Secretariat and
implementing arm of the Board;

b) Board" shall refer to the Sultan Kudarat

Investment Board (SKIB);
c) "Code" shall refer to the Sultan Kudarat
Provincial Investment Code of 2007;
d) "Province" shall refer to the Province of
Sultan Kudarat covering all the areas within
its territorial jurisdiction now existing or
hereinafter acquired, as provided for by law;

e) Preferred or Priority Investment Area shall

mean the economic activities that the Board shall
have determined and which the Sangguniang
Panlalawigan shall have approved, and declared
as such and where investors are encouraged to
infuse investments and actualize investment
projects.
f) "Existing enterprises" shall refer to those
establishment or enterprises whose places of
operation or production are physically located
within the territorial jurisdiction of Sultan Kudarat;

g) "Expansion projects" include modernization and

rehabilitation, and shall mean an increase of
existing volume or value of production, or
upgrading the quality of registered product or
utilization of inefficient or idle equipment, under
such guidelines as the Board may adopt;
h) "Incentives" shall refer to fiscal and non-fiscal
incentives as provided for in this Code;

i) "Local Personnel or Worker" refers to a person

who is a bonafide resident of the Province of
Sultan Kudarat employed in an enterprise
registered under this Code;
j) Green Investment Enterprises shall refer to
investors/enterprises availing incentives provided
for by this Code although they dont fall under any
of the categories set forth in Sec. 21 of the same
provided, however, they undertake to repaint,
regreen, landscape and/or produce organic
fertilizers;

k) "New investors/enterprises" shall refer to

investors or enterprises that have not or are not
currently engaged in any kind or type of business
in Sultan Kudarat Province but intend to, or
actually established, their place of operation or
production in the territorial jurisdiction of Sultan
Kudarat Province;
l) "Registered enterprises" refer to enterprises or
businesses registered in accordance with the
provisions of the Code.

m) Bona-fide Resident shall refer to a person with six (6)

months residency in any of the component
municipalities/city of Sultan Kudarat Province, 18 years of
age and above, and a duly registered voter.
n) Small Scale Enterprise shall refer to an enterprise with
a capitalization of up to Fifteen Million Pesos
(P15,000,000.00).
o) Medium Scale Enterprise shall refer to an enterprise
with a capitalization of Fifteen Million and One
(P15,000,001.00) Pesos to One Hundred Million Pesos
(P100,000,000.00).

p) Large Scale Enterprise shall refer to

industries with a capitalization of One
Hundred Million and One Pesos
(P 100,000,001.00).

CHAPTER V
SULTAN KUDARAT INVESTMENT BOARD (SKIB)

SECTION 8. Its Creation. There shall be

created a Sultan Kudarat Investment
Board which shall recommend policies and
implement the provisions of this Code and
shall, hereafter, be referred to as the Board.

SECTION 9. Composition of the

Board. The Board shall be composed of the
following:
Chairman : Provincial Governor
Co-Chairman : President, Sultan Kudarat Chamber
of Commerce and
Industry

Members :
a) Provincial Administrator
b) Sangguniang Panlalawigan/Board Secretary
c) Sangguniang Panlalawigan Member Chairman, Committee on Trade
and Industry
d) Sangguniang Panlalawigan Member Chairman, Committee on Labor
e) Sangguniang Panlalawigan Member Chairman, Committee on
Tourism
f) Sangguniang Panlalawigan Member Chairman, Committee on
Agriculture
g) Provincial Planning and Development Coordinator
h)
Provincial Agriculturist
i)
Provincial Veterinarian

j) Provincial Tourism Officer

k) Provincial Director, Department of Trade and Industry
l) Provincial Director, TESDA
m) Provincial Director, DOLE
n) President, Mayors League of the Philippines-Sultan Kudarat
Chapter,
o) President of Sultan Kudarat Bankers Association
p) Representative, Manufacturing Sector, as appointed by the
Chairman of the Board
q) Two Representative, Agricultural Sector, as appointed by the
Chairman of the Board
r) Representative of accredited Non-Government Organizations
(NGOs), preferably the President of the Association of Sultan Kudarat
NGOs

SECTION 10. Increase and Decrease of

Membership. The membership of the Board may
be increased or decreased by the Sangguniang
Panlalawigan upon the recommendation of the
Board for the effective implementation of the Code.
SECTION 11. Term of office The term of office of
the members of the Board shall be coterminous
with the term of office of local officials without
prejudice to their reappointment by the successor
Provincial Governor.

SECTION 12. Board Meetings and

Quorum.
- Within sixty (60) days upon approval of this Code,
the Provincial Governor, in his capacity as
Chairman, shall convene the Board after
appointing the members mentioned in Sec. 9
hereof. The Board shall meet at least once in
every quarter or as often as may be necessary, on
such a day and time as it may fix or as often as
necessary if called upon by the Chairperson.. The
presence of majority of its voting members shall
constitute a quorum and a majority of the quorum
of a meeting shall be required to exercise its
powers and perform its functions.

SECTION 13. Powers and

Functions of the Board.
The primary function of the Board shall be to
establish a favorable and stable policy on
business climate which will encourage and
support private sector investments and the
operation of business activities consistent
with the development and environmental
needs of the Province. Pursuant to this, the
Board shall be vested with the following
powers and functions:

(a) To promulgate such rules and regulations

as may be necessary to implement the
intent and provisions of this Code, taking
into consideration the holistic development
by safeguarding the well-being of the social,
cultural and ecological life of the community;

(b) To conduct economic and technical studies

in order to identify areas to be promoted,
appropriate incentives and government
support measures to be extended in order
to attract investors;

(c) To come up with a short (1-2 years) and

medium (3-5 years) term investment
promotions specifying investment priority
areas;
(d) To create the necessary organizational
unit(s) to successfully implement the
provisions of this Code, such as but not
limited to the Sultan Kudarat Investment
Promotion Center (SKIPC);

e) To supervise the operations and activities of the

Sultan Kudarat Investment Promotion Center
(SKIPC) for the effective implementation of the
provisions of this Code;
f) To evaluate and decide on the recommendation of
the SKIPC pertaining to the
cancellation/revocation and or imposition of
fines/penalties due to violations made by
registered enterprises as provided in this Code;

g) To review and update the fiscal and nonfiscal incentives granted to registered
enterprises under this Code;
h) To source out additional budgetary
requirement for the implementation of this
Code;

i) To review the investment policies set forth in

this Code, and formulate and recommend
necessary amendments and revisions
thereto, if there is any, to the Sangguniang
Panlalawigan for its consideration; and

j) To enter into an agreement with other government agencies

and/or private organizations facilitating and implementing
systems, procedures, requirements and facilitating
investments, and other support services for the Sultan
Kudarat Investment Promotions Program, subject to the
authority given
by the Sangguniang Panlalawigan in
accordance with RA 7160, otherwise known as the Local
Government Code of 1991; and
k) To perform such other functions as may be deemed
necessary for the successful implementation of this Code.

SECTION 14. Powers and Functions of the

Chairperson. The Chairperson of the Committee
shall have the following powers and duties:

(a) To preside over the regular and special

meetings of the Committee;
(b) To approve applications of qualified
applicants in accordance with the rules and
regulations of this Code; and
(c) Generally, to exercise such other powers
and perform such other duties as may be
necessary to carry out the objectives of this
Code.

SECTION 15. Powers and Functions of the Vice

Chairperson. - The Vice Chairperson of the
Committee shall have the following duties:

(a) To preside over the regular and special

meetings of the Committee in the absence
of the Chairperson; and
(b) To perform such other duties of the
Chairperson in the absence of the latter,
and such other duties as may be necessary
and required by the Board.

CHAPTER VI
THE SULTAN KUDARAT INVESTMENT
PROMOTION CENTER (SKIPC)
SECTION 16. Timeframe for the Establishment
and Existence of the Sultan Kudarat
Investment Promotion Center Immediately
within sixty (60) days after the day the Board
had been constituted, the Sangguniang
Panlalawigan, through enactment of an
Resolution/Ordinance shall create the Sultan
Kudarat Investment Promotion Center (SKIPC),
providing therefore its manpower, logistical and
funding requirements, in accordance with existing
laws, rules, and regulations.

The SKIPC shall be classified as regular

office in the Provincial Government of Sultan
Kudarat. As such, its existence shall be
categorized as Permanent and may only be
dissolved upon the unanimous recommendation
of the Board and upon the approval of
at least two-thirds vote of the
SangguniangPanlalawigan.

SECTION 17. Staff Complement The following positions

shall be created to compose the staff complement of the
Sultan Kudarat Investment Promotion Center:

1)One (1) Economist IV (SG 22);

2) Two (2) Clerks II (SG 4);
3) One (1) Bookbinder II (SG 4);
4) One (1) Messenger I (SG 2); and
5) Other necessary positions that the
Board may recommend to the Sangguniang
Panlalawigan.

Should there be no available source to fund said

creation, employees with appropriate
competency and skills be designated to
perform the duties & functions attached to the
aforementioned positions so as not to hinder
the implementation of the Code and not to set
naught the objectives and principles underlying
therein.

SECTION 18. Duties and Functions of Sultan Kudarat Investment Promotion

Center (SKIPC). The Sultan Kudarat Investment Promotion Center, hereinafter
referred to as SKIPC, will serve as the Secretariat of the Board and shall take an
active role in implementing this Code. In addition, SKIPC shall have the following
duties and functions:
a) To undertake pro-active market development and investment promotion activities;
b) To implement the annual investment promotions and development plan as
formulated and approved by the Board;
c) To serve as one - stop accepting, processing and evaluating all applications
for registration for the availment of the local incentives and submit its
recommendation to the Board within ten (10) working days from the receipt of
application;
d) To assist in (1) securing licenses and permits, (2) arranging for the availment of
local and national government incentives, and (3) identifying business or joint
venture partners, raw materials suppliers, possible business sites and other
requirements of existing and potential investors and enterprises;
e) To establish and maintain data bank on general business information, information
on economic activities, available technology, financing sources and other relevant
data or information;

f) To conduct appropriate and relevant studies, gather and analyze

pertinent facts and figures, and inform the Board on international,
national and local issues affecting the dynamics of investments; and to
initiate, organize and participate in promotional activities, such as
exhibitions, conferences and seminar for the stimulation of
investments;
g) To establish and maintain networking relations with counterpart
investment promotion organizations and coordinate with support
agencies of government and the private sector in investment
promotions efforts;
h) To spearhead the production, publication and dissemination of
investment promotions collaterals and whenever needed, conduct
briefings to investors and other interested parties;

i) To represent the Province of Sultan Kudarat in trade and

investments meetings, conferences, for a, conventions, and
other similar gatherings in both domestic and foreign
venues whenever so directed by the Board;
j) To build the competence of SKIPC staff to conduct
investment and environmental management promotion
functions;
k) To collate, analyze and compile pertinent data and
information and studies concerning areas that have been or
may be declared as Preferred Areas of Investment by the
Board;
l) To recommend to the Board any modification/amendments
to existing legislation and procedures on local investments;

m) To prepare the agenda for meetings of the Board and submit for its
consideration and approval policies and measures which are deemed
necessary to carry out the provisions of the Code;
n) To submit annual reports to the Board through the Chairperson on the
activities of the Sultan Kudarat Investment Promotion Center relative to
the implementation of this Code, within 60 days after the close of the
calendar year;
o) To monitor and evaluate project implementation of registered
enterprises under this Code for purposes of ensuring that the objectives
of the same are accomplished;
p) To recommend applicants for employment in the registered enterprises;

q) To identify problems and difficulties being

encountered by investors and offer viable
solutions and render necessary assistance
to them; and
r) To perform such other functions as may be
directed by the Board.

SECTION 19. Visitorial Power of the Board

or Center.
The Board, the Center, or any duly authorized member
thereof, is hereby empowered and authorized to conduct
an ocular inspection of the premises or examination of the
business activity of any enterprise, including the records
and books of any enterprise, registered or applying for
registration at any reasonable time of the day, during office
hours, for verification or ascertaining, the enterprises strict
compliance with the provisions of the Code, or when the
Board or Center deems it necessary in or incidental to the
effective exercise and performance of their respective
functions and powers.

CHAPTER VII
INVESTMENT PRIORITIES PLAN
SECTION 20. Criteria in Determining Investment
Priority Areas. - Economic activity that shall be
included in the Investment Priorities Plan must be
environmentally, socio-economically, technically
and financially sound after thorough investigation
and analysis by the Board. The determination of
preferred areas of investment to be listed in the
Investment Priorities Plan shall be based on the
following:

a) long-run comparative advantage

b) economic soundness
c) extent of contribution of the activity to a
specific development goal
d) market and technical considerations
e) value of social objectives
f) other indicators of comparative advantage.

SECTION 21. Preferred Areas of

Investment.
- The Board shall determine the preferred areas of
investment taking into account those which will
economically produce goods for domestic use in
substitution of goods being imported in large
quantities and thereby increase the value of
agricultural, mining, and other products already
being produced or which will make products at
cost low enough to be sold competitively in either
domestic or export markets. Priority shall be given
but not limited to the following:

AGRICULTURE
* Commercial agricultural or food production (corn, palay,
fruits)
* Coffee production
Agri-Business and Food Processing
* Amakan (Palm Oil Leaf) Weaving
* Fruit Processing (Vacuum, Dehydrated, Spray Dried)
* Canned Specialty Vegetables
* Snack Food
* Cutflower Production

MARINE RESOURCES
* Pearl farming
* Commercial aquaculture or harvesting of pearl
shell, shell fish or other reef or lagoon products
* Commercial fishing
* Fresh fish processing
* Fresh fish exporting
* Fish bait production

MANUFACTURING & PRODUCTION

* Food processing including freezing and drying, or drink bottling
* Screen printing of fabrics or other piece goods
* Garment manufacture
* Making of traditional or cultural handicrafts and artifacts (including
commercial reproductions)
* Recordings of cultural performances
Jewellery
TOURISM
* Visitor accommodation
* Motor vehicle rentals
* Tourist tours or transfers
* Eco-tourism
Business Hotels
Restaurants
Resorts
Parks

Light Manufacturing and Assembly

Garments
Footwear
Toys
Bulky Kitchen and House Wares
Property Development
Industrial Estate
Convention Center
Residential Area Development
Commercial/Office Building

Establishment of Foreign Bank Branches

Medical, Educational, Training, and
Sports Facilities
Telecommunications
Environmental Enhancement and
Protection Project

OTHER AREAS
Cinema operations
* Cultural attractions (including cultural performances)
* Bakeries or pastry shops
* Grocery retail outlets (including sundry stores, superettes, and
supermarkets)
* Ownership of galleries for paintings or other visual arts
* Motor vehicle dealers
* Restaurants, cafs, or other food preparation and sale operations
* Retail of traditional or cultural handicrafts and artifacts (including commercial
reproductions)
* Sale or supply of computer hardware or related services
* Trucking operations
* Taverns or public bars
* Laundry or dry-cleaning
* Places offering Internet access (e.g. internet cafs)
* Audio or video production, hire, or sale
* Hairdressing salons, beauty parlours, or health spas
* Call centers
*

SECTION 22. Non area specific priority investment activities New

investments in economic activities which fall under Green Investments
shall be eligible for incentives even if they are located outside the defined
priority investment areas, to wit:

a) Repainting of establishments;
b) Regreening through tree planting;
c) Landscaping;
d) Production of organic fertilizers;

SECTION 23. Criteria in Determining Investment Priority. - The Board

shall take into account the following criteria in the determination of
investment priority, to wit:

(a) The gaps between prospective demand and

existing supply for specific products, commodities
and services and the additional production
capacities that must be induced, where such
exist;
(b) The potential of such areas of investment for
creating new markets , both domestic and
foreign, for domestic suppliers of raw
materials/intermediate goods, or new sources of
supply for domestic consumers of the products;

(c) The potential of such areas of investment for

creating productive employment, considering the
necessity for the dispersal of industries in the
countryside on a planned and balanced basis to
the extent that is economically feasible and
practicable;
(d) The extent to which investment in such areas will
integrate existing production facilities;

(e) The amount of capital normally needed

thereby;
(f) The nature of risk, commercial or
otherwise, which will be entailed;
(g) The proportion of the required capital, raw
materials and labor inputs of indigenous
origin;
(h) The comparative advantage they enjoy or
could be made to enjoy; and

(i) The availability of local raw materials and

manpower skills needed for said project.
The Board shall give priority to projects with the
highest rate of return favorable to the local
economy. No Projects shall be included in the
investment priorities plan nor declared as
preferred areas of investment, unless shown to be
economically, technically, financially and
ecologically sound after thorough investigation and
analysis by the Board.

SECTION 24. Determination of

Additional Investment Areas.
(a) Additional economic activities may be
included in the list of priority investment
areas upon approval by the Board and shall
then be adapted for implementation under
the Sultan Kudarat Investment Promotions
Program.

The inclusion of investment priority areas should be

based on the following factors:

(1) generation of high levels of employment,

(2) high degree of value-added features,
(3) creation of linkages with local industries,
and
(4) no deleterious effect on the environment.

(b) The Board, however, may remove an area or activity from

the list, at any point, when any of the following conditions is
present:
(1) sufficient investments in the areas or activity have been
attained,
(2) continued extension of incentives or support measures for
the specific investment area is no longer to the interest of
Sultan Kudarat Province or may place the government and
the public in adverse position,
(3) the investment area or activity cannot attract investors
within reasonable time and cost or may result in
unfavorable business climate, and
(4) lack of progress in the implementation of an environmental
management plan.

SECTION 25. Review of Investment Incentives

and Support Measures.
- To promote the growth of investments in the
province particularly in the preferred investment
areas, the Board shall review the package of
incentives and support measures once in every
two (2) years, and recommend for approval to the
Sangguniang Panlalawigan the appropriate
specific fiscal and non-fiscal incentives that the
provincial government shall grant to targeted
investors and enterprises.

CHAPTER VIII
AVAILING ENTERPRISES
SECTION 26. Qualifications of New
Investors/Enterprises. New investors
who intend to avail of the incentives
provided in the Code must meet the
following qualifications:
a) That the business enterprise must have
complied with all the requirements
mandated under existing local and national
laws, rules and policies of the government;

b) That the prospective investors place of operation

or production be located within the territorial
jurisdiction of the Province of Sultan Kudarat;
c) That the prospective investors must engage in
activities in preferred areas of investment such as
tourism, manufacturing, production,
processing, transportation, energy
development, agro-industrial, agro-forestry
industry and agriculture;

d) The new enterprise must have a capitalization of

at least Five Million Pesos (P5,000,000.00),
provided that the amount of capitalization shall be
based on the total project cost as stated in the
investors profile submitted to the SKIPC;
e) That the enterprise will see to it that not less than
twenty-five percent (25%) of its total work force
shall be bona-fide residents of the Province of
Sultan Kudarat.
f) Foreign companies intending to apply for
registration must comply with Foreign Investment
Act of 1991;

g) The project must not be included in the negative list as

provided for under the Foreign Investments Act (R.A.
7042);
h) Project must not negatively impact the environment,
whether in terms of pollution or resource use; and
i) Registered with Securities and Exchange Commission
(SEC) in the case of a corporation and association,
Department of Trade and Industry (DTI) in the case of a
single proprietorship or Cooperative Development
Authority (CDA) in the case of a cooperative;

SECTION 27. Qualifications of Existing Enterprises

An existing enterprise may avail of the incentives

under
this Code
that the following
qualifications
a) That
theprovided
business
enterprise
mustare
met, to wit:
have complied with all the requirements

have complied with all the requirements

mandated under existing local and national
laws, rules and policies of the government;
b) That the prospective investors place of
operation or production be located within
the territorial jurisdiction of the Province of
Sultan Kudarat;

c) That the prospective investors must engage in activities in

preferred areas of investment such as tourism,
manufacturing, production, processing,transportation,
energy development, agro-industrial, agro-forestry
industry and agriculture;
d) That the enterprise will see to it that not less than twentyfive percent (25%) of its total work force shall be bona-fide
residents of the Province of Sultan Kudarat.
e) Registered with Securities and Exchange Commission
(SEC) in the case of a corporation and association,
Department of Trade and Industry (DTI) in the case of a
single proprietorship or Cooperative Development Authority
(CDA) in the case of a cooperative;

f) The existing enterprise whose place of operation or

production is already located within the territorial
jurisdiction of the province, but which intends to
undertake any of the following activities:
1) Relocate its principal office, but not the production
site of activity, from other places of the country to
Sultan Kudarat; or,
2) Expand its existing production capacity or
construct new buildings and other civil works for
the installation of new machinery and equipment or
improvements thereof which will result in an
increase in production capacity.

g) The expansion or diversification shall have an

additional project cost in the scale as provided in
this Code, provided that the amount of
capitalization shall be based on the total additional
project cost and such expansion or diversification
as stated in the investor's project study submitted
to and approved by the Board;
h) The expansion or diversification project will
provide employment to bona-fide residents of the
province; and,
i) The expansion or diversification will include an
environmental management plan.

j) The intended expansion or diversification of the enterprise

must engage in any of the specifically identified
preferred or priority investment areas as may hereafter be
declared by the Board;
k) The enterprise must show proof of financial capacity and
capability to undertake the expansion or diversification
project and its operation;
l) Relocate its principal office from other places of the
country to the Province of Sultan Kudarat; or

m) Expand its existing production

capacity or construct new buildings and
other civil works for the installation of
new machinery and equipment or
improvements thereof which will result in
an increase in production capacity;

SECTION 28. Registration Requirements.

(a) Single Proprietorship:
1) Four (4) copies of completed registration forms;
2) A copy of the complete project study of the proposed
investment/expansion showing that the project is
economically, technically, financially and environmentally
feasible and viable;
3) A copy of Business Name Registration; and
4) A copy of audited Financial Statements (if existing).
5) A complete copy of the Environmental Impact Study.
6) A copy of the Environmental Compliance Certificate.

(b) For Partnership/Corporation:

1) Four (4) copies of completed registration forms;
2) A copy of the complete project study of the proposed
investment/expansion showing that the project is economically,
technically, financially and environmentally feasible and viable;
3) A copy of the Articles of Partnership or Incorporation as approved by
the Securities and Exchange Commission (SEC) for partnership,
corporation, association and foundation;
4) A certified true copy of its Certificate of Registration by the SEC, for
corporation, partnership, association and foundation, and its Business
Name Registration by the Department of Trade and Industry and the
Mayors Permit;
5) Resolution of the applicants Board of Directors, in case of a
Corporation authorizing the filing of application;
6) A copy of audited Financial Statements (if existing);
7) A complete copy of the Environmental Impact Study; and
8) A copy of the Environmental Compliance Certificate.

(c) For Cooperative:

1) Four (4) copies of completed registration forms;
2) A copy of the complete project study of the proposed
investment/expansion showing that the project is economically,
technically, financially and environmentally feasible and viable;
3) A copy of the Articles of Cooperation as approved by the Cooperative
Development Authority (CDA) for cooperatives;
4) CDA Registration;
5) A copy of audited Financial Statements (if existing);
6) A complete copy of the Environmental Impact Study; and
7) A copy of the Environmental Compliance Certificate.

SECTION 29. Prior Consent of

NCIP.
The new enterprise must secure from the
Regional Office of the National Commission
on Indigenous Peoples a Free and Prior
Informed Consent (FPIC) should the
proposed site of investment be located
within the ancestral domain claim of the
indigenous peoples.

SECTION 30. Registration

Procedures.
a) Venue for Filing of Applications. - All
applications shall be filed with the SKIPC.
b) Date of Official Acceptance. - The
application shall be recorded in the
Registration Book and the date appearing
therein and stamped on the application shall
be considered as the date of official
acceptance. Only applications with
complete requirements shall be accepted.

c) Filing Fee. - A non-refundable filing fee shall be

paid together with the required documents for
registration.

The following are the non-refundable Filing

Fees to be collected:
(1) P 1,000.00 - Small-scale Enterprise
(2) P 2,500.00 - Medium-Scale Enterprise;
and
(3) P 5,000.00 - Large Industries

(d) Processing Time. - Application shall be

acted upon by the SKIPC within ten (10)
working days from the official acceptance
thereof and by the Chairman of the Board
within the next 10 working days. If and when
the application is not acted upon within the
stated period of a total of twenty (20)
working days, the application is deemed
approved.

(e) Certificate of Registration. - A registered

enterprise under the code shall be issued a
Certificate of Registration with the signature
of the Chairman of the Board and/or such
other officer as the Board may empower
and designate for the purpose. It shall state
among others, the following:

(1) Name of the Registered Enterprise;

(2) The priority investment area in which the
registered enterprise will engage in; and
(3) The other terms and conditions to be
observed by virtue of its registration.

SECTION 31. Evaluation and

Approval Procedures.
a) Once an application is officially accepted, the
project will be evaluated by the Sultan Kudarat
Investment Promotion Center (SKIPC) which may
conduct ocular inspection at the premises or
examination of the business community.
b) If found not qualified, SKIPC shall inform the
applicant in writing.
c) If found qualified, the SKIPC forwards the
application to the Board for its deliberation for the
registration of the project or enterprise or for the
grant of incentives applied for.

d) The Chairman of the Board shall approve the application

upon the favorable recommendation of the SKIPC.
e) The SKIPC shall inform the applicant in writing the decision
of the Baord on its application.
f) Once approved by the Chairman, the SKIPC within five (5)
working days shall inform the applicant in writing and
delivers the Certificate of Registration. The SKIPC then
informs the Provincial Treasurer, the Provincial Assessor,
the Municipal Treasurer and the Municipal Assessor where
the business establishment is located, of such approval for
their information, guidance and appropriate action.

SECTION 32. Evaluation Criteria. The following

criteria shall be used in the evaluation of application
for registration under this Code:
a) Capitalization. - The project must have a total
project cost of at least Five Million (P
5,000,000.00);
b) Employment. - That the project shall employ
bona-fide residents of Sultan Kudarat Province of
not less than 25% of its total work force;
c) Compliance of all registration requirements
mandated under existing local and national laws;
d) Location. - The operation of the project shall be
located within Sultan Kudarat Province and

SECTION 33. Certificate of

Registration.
Under this Code, an enterprise is considered
registered upon approval of its application
with the Board, and as such, legally entitles
it to fully avail of any or all of the fiscal
incentives provided in this Code. A
registered enterprise shall be issued a
Certificate of Registration duly signed by the
Board's chairman in such style and form as
the Board may determine.

SECTION 34. Rights and

Privileges.
- All investors or registered enterprises are
entitled to the rights and guarantees
provided for by law and the Constitution and
the privileges provided for by this Code. In
addition to such rights and guarantees to
enhance investors confidence under this
incentives program, the Provincial
Government through the Sultan Kudarat
Investment Promotion Center shall:

a) Provide concise and comprehensive information

to prospective investors regarding the economic
priorities of the province, target investment
areas, and the general conditions applicable to
incoming direct private investments;
b) b) Take the fullest possible accounts of the need
of the investors for stability, growth and profit in
their operations in the formulation or modification
of policies and ordinances that will affect
investments;

c) Disseminate to investors and the general public, the investment

evaluation criteria and registration procedures to enhance government
transparency in the process of granting investments in the province;
d) Facilitate implementation of the investment project;
e) Not to interfere or modify arrangements with investors after the details
for the implementation of an investment project has been accepted and
approved, and the ownership and management structure of the
enterprise has been established, unless the law provides otherwise;
f) Avoid and/or provide undue distortion of competition between or among
enterprises operating within the territorial jurisdiction of the province,
whether domestic or foreign, when granting any special exemptions or
incentives aimed at encouraging investment in the identified target
areas;

g) All investors who shall invest under this Code are hereby
encouraged to hire employees residing within the province
with due consideration on the recommendations of SKIPC
or the Board; and in cases where no local personnel or
worker is qualified and capable, allow the employment of
qualified non-residents or foreign personnel where this is
necessary, for the efficient operation of the enterprise or for
technology transfer;
h) Resolve all doubts and/or conflicts concerning the benefits,
privileges, and incentives granted under this Code or in
other local ordinances enacted for the purpose of
encouraging investment, in favor of the investor.

SECTION 35. Duties and Responsibilities

of Registered Enterprises.
Every registered enterprise shall submit to the
SKIPC the following reports and/or documents
within the time herein prescribed:
(1) Amendments of Articles of Incorporation or Bylaws, or Articles of Partnership, or Articles of
Cooperation, within thirty (30) calendar days from
the date of submission of said amendments with
the Securities and Exchange Committee or
Cooperative Development Authority;

(2) Change of Directors within thirty (30) calendar

days from the change;
(3) Report on alien officers or employees within thirty
(30) calendar days from date of registration or
from the appointment of such aliens/replacements;
Provided: that such alien/s are registered as such
with the Bureau of Immigration and Deportation
(BID) and with the Department of Labor and
Employment (DOLE);

(4) Report on employment of bona-fide Sultan

Kudarat residents within thirty (30) calendar
days from date of registration or from the
appointment of their replacement;
(5) Quarterly report on the enterprises
business operations, including its production
or gross sales or receipts, within thirty (30)
calendar days from end of each quarter;

(6) Audited Financial Statements, within thirty

(30) calendar days after its submission to
the Bureau of Internal Revenue (BIR); and
(7) Report on total local incentives availed of
under this Code.

SECTION 36. Sanctions for Late submission of

the Preceding Reports and Documents.
For late submission of reports and the
aforementioned documents, every registered
enterprise shall, for each preferred/priority area
of investment, be fined in accordance with the
following:
1st violation P 5.00 per day every violation;
2nd violation P 10.00 per day every violation;
3rd violation & subsequent violations P 20.00 per
day for every violation

CHAPTER IX
FISCAL AND NON-FISCAL INCENTIVES
SECTION 37. Tax Incentives to Registered Enterprises. In addition to the incentives provided under Republic Act
7160 otherwise known as "Local Government Code of
1991," and Republic Act 7916 known as "The Special
Economic Zone Act of 1995," Executive Order No. 226
known as "Omnibus Investments Code of 1987" and other
pertinent laws, a registered enterprise under this Code
shall enjoy the following tax incentives through
consultations with Local Government Units (LGUs) within
the territorial jurisdiction of the Province of Sultan Kudarat:

a) Tax credit equivalent to ten percent (10%) of the

total cost of
approved infrastructure project to
be deducted from the future real property tax
liability of the registered enterprise within a period
of five (5) years starting from the date of the
expiration of the tax exemption of the registered
enterprise; provided, that said infrastructure
project shall be open for public use;

b) Exemption from payment of Tax on:

1. Real Property Tax imposed under Resolution No.
169/Ordinance No. 05-12, otherwise known as the
Provincial Revenue Code of Sultan Kudarat, for a
period of six (6) years from the date of registration
approved by the Sultan Kudarat Investment Board
or from the date of the expiration of the registered
enterprise' tax exemption as provided under other
national laws, whichever is applicable; provided,
that the tax exemption shall pertain only to the
thirty-five percent (35%) share of the province.

2. Transfer of Real Property Ownership under Article

224 of the IRR of Local Government Code of
1991, as adopted under Resolution No.
169/Ordinance No. 05-12, otherwise known as the
Provincial Revenue Code of Sultan Kudarat;
3. Business of Printing and Publication under Art.
225 of the IRR of Local Government Code of
1991, as adopted under Resolution No.
169/Ordinance No. 05-12, otherwise known as the
Provincial Revenue Code of Sultan Kudarat;

4. Franchise Tax under Art. 226 of the IRR of Local

Government Code of 1991, as adopted under
Resolution No. 169/Ordinance No. 05-12,
otherwise known as the Provincial Revenue Code
of Sultan Kudarat;
5. Amusement Tax under Art. 229 of the IRR of Local
Government Code of 1991, as adopted under
Resolution No. 169/Ordinance No. 05-12,
otherwise known as the Provincial Revenue Code
of Sultan Kudarat;

SECTION 38. Non-Fiscal Incentives. - Registered

enterprises and investors shall be granted the
following non-fiscal incentives:
a) Provision of a one-stop documentation center for simplified
documentation/registration procedures which shall be
facilitated with the assistance from Sultan Kudarat
Investment Promotion Center;
b) Consistent support for industrial peace through SKIPC;
c) Assistance in securing direct source of electric power and
water supply connection;
d) Assistance in the negotiation of special rates for industries
with a minimum load of at least 1000 kilowatts;
e) Assistance in site selection and negotiation for right of way;
f) Assistance in labor recruitment and arbitration;

g) Technical trainings support by the Provincial

Government of Sultan Kudarat in coordination with
the national agencies such as Technical Education
Skills and Development Authority (TESDA) and
other similar institutions to answer the skills
requirement of industries located in the Province of
Sultan Kudarat; and
h) Other non-fiscal incentives as may be determined
by the Sangguniang Panlalawigan through the
enactment of Resolutions/Ordinances, as the case
maybe.

SECTION 39. Availment of Tax

Incentives.
- A registered enterprise qualified under this
Code shall within six (6) years from the start
of its commercial operation be exempted
from the aforesaid provincial imposition in
the manner and conditions hereunder
prescribed:

(a) For those employing fifty percent to sixty nine percent

(50% - 69%) of their labor from qualified residents of the
province with due regard on the recommendations of the
Board or Center:

(1) 100% - 1st and 2nd year

(2) 80% - 3rd year
(3) 60% - 4th year
(4) 20% - 5th year
(5) 10% - 6th year
(6) 0% - 7th year

(b) For those employing seventy percent (70%) or more of

their labor from qualified residents of the province with due
regard on the recommendations of the Board or Center:

(1) 100% - 1st and 3rd year

(2) 40% - 4th year
(3) 20% - 5th year
(4) 10% - 6th year
(5) 0% - 7th year

SECTION 40. Exclusion.

- This grant shall not apply to regulatory fees which are levied under the
police power of the Provincial Government.

SECTION 41. Factors Governing Exemptions and

Incentives.
The grant of these exemptions and incentives shall be
governed further by the following factors:
(a) Tax exemptions:
(1) The grant to a type or kind of business shall apply to all
businesses similarly situated subject to the pertinent
provisions of this Code.
(2) The exemption granted shall take effect only during the
next calendar year to a period not exceeding six (6) years
thereafter.
(3) On shared revenues, the exemption shall extend only to
the local government unit granting such exemptions or
relief unless the LGU concerned shall extend the same
privilege to such enterprise qualified under this Code.

(b) Tax incentives:

(1) Tax incentives shall be granted only to new
investment in the locality as well as existing
enterprises qualified under this Code.
(2) The grant shall be based on the capitalization of
the enterprise registered under this Code, and in
no case shall exceed six (6) fiscal years.
(3) Such grant to a type or kind of business shall
apply to all similar businesses qualified under this
Code.

CHAPTER X
GREEN INVESTMENTS INCENTIVES
SECTION 42. Coverage Green Investment
Enterprises availing of incentives need not
fall under any of the categories set forth in
Section 21 of this Code.

SECTION 43. Repainting

An existing enterprise which paint all portions of its
buildings or other structure which are visible , or
will be visible , to the public and its clientele in the
course of the conduct of its normal business
operations shall be eligible to deduct from gross
receipts its direct painting cost but not to exceed
thirty percent of the gross receipts for the year
subject to the following conditions:

(a) The building, or buildings, are located

within any of the provinces
municipalities/city or barangays;
(b) Any excess may be charged against
succeeding tax years for a maximum period
of three years subjects to the same ceiling
of thirty percent of gross receipts;
(c) This incentives may be availed of only
once every three years.

SECTION 44. Regreening

An enterprise which plants trees at specified
locations shall be entitled to deduct P
10,000 from its gross receipts for each
growing trees but not to exceed thirty
percent of its gross receipts for the year
subject to the following conditions.

(a) To be qualified for incentive, a tree must have been growing for at least
one year and must be at least 4 feet in height at the time it is applied
for incentive.
(b) Any excess may be charge against succeeding tax years for a
maximum period of three years subject to the same ceiling of thirty
percent of gross receipts;
(c) This incentives may be availed of only once every three years;
(d) Tree(s) which are destroyed or otherwise die due to negligence by the
enterprise within the period of availment shall result in the addition of P
10,000 to the current tax base for each tree lost.
(e) This incentive is non- transferable. In case of a change of ownership of
the enterprise, the incentives shall not be transferred to the new owner,
but shall continue to be enjoyed by the original owner and applied to
his new business enterprise, if any, provided the period of
incentive shall

(e) This incentive is non- transferable. In case of a change of

ownership of the enterprise, the incentives shall not be
transferred to the new owner, but shall continue to be
enjoyed by the original owner and applied to his new
business enterprise, if any, provided the period of
incentive shall expire within two years from the date of
application regardless of whether the owner availed of it or
not.
(f) An enterprise availing of this incentive shall file an
application with the SKIPC regarding its intent to plant, the
kind of trees to be planted , location and the date of
planting. Planting shall be completed within one month
from approval of said application.

(g) The trees must be planted within , or at the frontage of the enterprises
place of business , or along the street fronting such place of business or
in the absence of space at the enterprises place of business, in any of
the following priority areas;

(i) Within 20 meters of either side of the provincial

road or municipal road ;
(ii) Residual forest areas;
(iii) Areas identified with historical values;
(iv) Areas of high biodiversity;
(v) Eroded slopes;
(vi) Public open spaces especially in residential and
commercial areas including street islands, parks,
promenades, parking area peripheries and in wide
sidewalks as may be suitable;

Provided that proper coordination is made

with the city, municipal or provincial
government, as the case may be, whenever
the enterprise decides to plant trees in a
public property and provision is made by the
enterprise to ensure the care and survival of
the planted trees.

SECTION 45. Landscaping

An existing enterprise which landscapes its
premises shall be entitled to deduct from its
gross receipts its direct landscaping cost but
not to exceed thirty percent of its gross
receipts for the tax year subject to the
following conditions:

(a) Any excess may be charged against succeeding tax years for a maximum period
of three years subject to the same ceiling of thirty percent of gross receipts;
(b) This incentive may be availed of only once every three years;
(c) The landscaping shall not be less than 10 sq.m. of contiguous or adjacent areas
which shall include the enterprises entire frontage area.
(d) In the absence of sufficient space at the enterprises place of business , the
required area may be complied with by landscaping any of the following priority
areas.
(i) Areas identified with historical values;
(ii) Public open spaces especially in commercial areas including street islands, parks,
promenades, parking area peripheries and in wide sidewalks as may be suitable;
Provided landscaping undertaken in any of these public areas shall not be less
than 10 sq.m. regardless of the total area landscaped within the premises of the
enterprise.
(e) The province reserves the right to reappraise the cost of the landscaping in case it
finds the reported cost excessive.
(f) The landscape shall have been properly maintained.
(g) This incentive may be availed of only once every three years.

SECTION 46. Signboards

An enterprise utilizing public property to avail of the
incentives provided in the preceding two sections
shall be allowed to place a signboard, free of any
fees, tax or charges, promoting environmental
consciousness, or other slogans or caricature
supportive of growth and development, with the
enterprise name and logo which should be of a
size and dimension such that it will not over
shadow the aesthetic beauty of the project nor
the message of the signboard.

SECTION 47. Regulation

The Board shall ensure that the regreening
and landscaping projects undertaken by
enterprises on public property shall be in
harmony with the overall regreening and
beautification program of the provincial
government and/or local government
concerned.

SECTION 48. Production of

Organic Fertilizers.
New enterprises engaged in the production of
organic fertilizers of plant and animal origin
including the production of microbial fertilizer with
nitrogen fixing organism shall be entitled to the
incentives provided for under Chapter IX provided
the enterprise maintains a price differential vis avis synthetic fertilizers as may be fixed by the
Board. Mere mixing and compounding of organic
fertilizers are not covered.

CHAPTER XI
PROTECTION OF THE ENVIRONMENT
SECTION 49. Environmental Impact Assessment.
Environmentally critical projects or enterprises
locating their activities or expansion projects in
environmentally critical areas shall comply with the
requirements of Presidential Decree No. 1586
(Philippine Environmental Impact Statement
System) and related issuances of the Department
of Environment and Natural Resources.

SECTION 50. Hazardous

Substances.

Projects involving the handling, transport,

processing and storage of toxic, hazardous
substances and/or nuclear waste shall not
be entitled to any incentives under this
Code.

Specific prohibitions.

(a) No industrial or manufacturing facility shall be operated without proper

solid and wastewater disposal facilities;
(b) No industrial or manufacturing plant shall be operated at levels beyond
the operating capacity of their respective waste treatment facilities in
order to maintain the effluent quality within the standards required by
law;
(c) All Industrial and manufacturing establishment shall subject their
operations and premises, facilities and systems to periodic
environmental assessments which shall be conducted by the provincial
government in coordination with the Department of Environment and
Natural Resources. Refusal to be subject to such inspection shall be
sufficient ground for the forfeiture of any incentive and the revocation of
its Certificate of Registration and/or Business Permit by the concerned
local government units.

CHAPTER XII
FINAL PROVISIONS
SECTION 51. Penal Clause. Any violation of the provision of
this Code shall be ground for cancellation or revocation of
the registration of the business and the withdrawal of
incentives granted under this Code. The Certificate of
Registration of a Business Enterprise, as provided in this
Code, may be cancelled or revoked due to the following:
(1) Violation of the provisions of this Code;
(2) Failure to commence actual project development within
one (1) year from approval or registration.
(3) Violation of environmental laws particularly those relating
to ecological conditions.

Cancellation or revocation of the certificate of

registration shall mean the withdrawal of all the
incentives granted under the Code; and all fees
and charges previously exempted shall become
due and demandable.
Upon the recommendation of the Center, the
Chairman of the Board may cancel or revoke the
Certificate of Registration of the concerned
business enterprise through a formal written notice
to that effect, and shall become effective on the
16th day from the receipt thereof.

SECTION 52. Appeal from the Decision of

the Board.
The applicant or business enterprise
adversely affected by any decision of the
Board relative to its cancellation/revocation
of registration or the impositions of
fines/penalties in accordance with this Code
may, within fifteen (15) days upon receipt of
such decision, appeal the same to the
Sangguniang Panlalawigan, whose decision
shall be final and executory.

SECTION 53. Refund and Penalties

In case of cancellation of the Registration
Certificate, the Board shall require the
refund of incentives availed of and impose
corresponding fines and penalties.

SECTION 54. Appropriations.

- Appropriation covering the current operating
expenditures and capital outlays for the Board and
the Sultan Kudarat Investment Promotion Center
(SKIPC) shall be sourced thru a Supplemental
Budget from the General Fund (for its starting
operation in FY 2007) and from the 20% Annual
Development Fund and/or regular Annual Budget
(for its succeeding operation for FY 2008 onward).

SECTION 55. Revenues From The

Operation Of The Code.
Income derived from the operation of this Code shall
go to the provincial coffers captioned
Investment Promotion Fund. Said fund shall
be used solely for the operation of the Sultan
Kudarat Provincial Investment Code and for
capital outlays and maintenance and other
operating expenses of the Sultan Kudarat
Investment Board (SKIB) and Sultan Kudarat
Investment Promotion Center (SKIPC).

SECTION 56. Immediate Release

of Fund.
For the purpose of expediting the operations
of the Board and of the Center, its allocation
from Investment Promotion Fund shall be
immediately released.

SECTION 57. Modification in the Systems and

Procedures in the Offices of Local Government Units
Within Sultan Kudarat Province.

Local government units within the territorial

jurisdiction of the Province of Sultan Kudarat
involved at any stage of the application for and
availment of incentives shall henceforth modify
their systems and procedures in the issuance of
applicable permits and license so as to be
consistent with the provisions of this Code. These
offices shall further coordinate with the SKIPC for
the purpose of setting up a one-stop processing
center to expedite the processing of all
applications.

SECTION 58. Separability Clause.

If, for any reason, any portion or provision,
section or part of this Code is declared not
valid by a Court of competent jurisdiction or
suspended or revoked by the Sangguniang
Panlalawigan, such judgment shall not affect
or impair the remaining portions, provisions,
sections, or parts thereof which shall remain
or continue to be in full force and effect.

SECTION 59. Repealing Clause.

All ordinances, rules and regulations, or part
thereof, in conflict with, or inconsistent with
any provisions of this Code, are hereby
repealed, amended or modified accordingly.

SECTION 60. Effectivity.

This ordinance shall take effect immediately

upon its approval.